KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
With President-elect Donald Trump pledging to eliminate federal income taxes and further reduce corporate taxes, a longstanding tax break on municipal bonds may be at risk. As Republicans near control of both the White House and Congress, lawmakers may seek alternative revenue sources to offset the significant costs of these tax cuts, and the muni bond tax exemption, worth around $40 billion annually, could be an option. The municipal bond exemption , established in 1913, allows investors to avoid taxes on interest from bonds used by local governments to fund infrastructure, like bridges and roads. This feature has been critical for public finance, lowering borrowing costs for municipalities. If removed, state and local governments might face higher borrowing costs , potentially reducing infrastructure projects and placing more financial pressure on taxpayers. Despite bipartisan support for the exemption, some analysts predict select sectors, like education, could see restrictions ...